Method and system for internet banking and financial services

ABSTRACT

A computer implemented method of providing a client with an integrated financial management account, comprising, receiving application data for an integrated financial management account, setting up the integrated financial account with a loan component data, an investment component data, and an insurance component, all associated with an account file. Qualifying the client for a loan in the loan component of the integrated financial management account and associating the qualification information with the account file. Disbursing the proceeds of the loan component into the investment component by recording a proceed value in the investment component data associated with the account file and purchasing investment assets using the proceeds of the loan component and associating purchased investment assets to the investment component data associated with the account file.

CROSS-REFERENCE TO RELATED PATENT APPLICATIONS

This application is a Divisional of U.S. patent application Ser. No.09/578,508, filed May 26, 2000, incorporated herein by reference in itsentirety, which is an application claiming the benefit under 35 U.S.C.119(e) of U.S. Provisional Application Ser. No. 60/136,400, filed May27, 1999, incorporated herein by reference in its entirety.

NOTICE OF COPYRIGHT MATERIAL IN DISCLOSURE

A portion of the disclosure in this patent document contains materialwhich is subject to copyright protection. The copyright owner has noobjection to the facsimile reproduction of the patent document or thepatent disclosure in its entirety but not separately, as it appears inthe Patent and Trademark Office patent files or records, but otherwisereserves all copyright rights in their entirety.

FIELD OF THE INVENTION

This invention relates to a system and process for a personal integratedfinancial management account that enables a client to utilize an asset,such as the equity in their home to obtain a loan used to purchaseindexed funds or mutual funds for appreciation. The present inventionalso relates to the integrated financial management account providingadditional account features such as insurance, or financial derivativesused to insure against the loss of loan principal and/or appreciation inthe funds due to subsequent market declines. The account also providesclients with the ability to customize and modify the account at any timeand to obtain real time or near real time valuations of the assets andliabilities. The present invention also relates to a system and processfor performing such transactions remotely in a secure manner insubstantially real time or near real time.

BACKGROUND OF THE INVENTION

Today the percentage of households in America and worldwide that ownstocks has increased substantially. Either through pension funds, 401Kplans, mutual funds or purchase of individual stocks, most homeownersparticipate in varying degrees in the equity market. More recently, manyinvestors who previously purchased actively managed mutual funds nowpurchase stock index funds that acquire and hold securities that mirrorthe performance of some equity index, e.g. S&P 500, Russell 2000, or asector specific index, technology, or funds balanced to reflectmovements in both debt and equity. In short, Americans and otherworldwide investors have become financially sophisticated investors withan understanding of stock markets, mutual funds, and the alternativetypes of fund investments available. For example, recognizing researchthat indicates that most investors cannot beat the performance of thestock market overall, and that over 80 to 90% of the actively managedmutual funds do not outperform passively managed index funds, Americanshave increased their purchasing of stock index funds substantially. ManyAmericans now regard these indexed fund investments as the safest, mostliquid, and prudent way to invest for stock appreciation rates of returnover time.

Currently, most investment funds are sold by and managed by stockbrokerage firms, mutual fund firms, and money management organizations.The money management organizations may be independent or part of anotherfinancial service institution, e.g. a brokerage house or a commercialbank. Current banking and securities laws require that the offerings anddisclosures relating to the funds, whether offered by a brokerage firmor a commercial bank, ensure that the customer does not believe that theaccounts are insured by the Federal Government.

Margin accounts for investments are well established and regulated bythe appropriate margin account limit for collateral as a percent of fairmarket value set by the Federal Reserve Board, which limit is applicableto all commercial banks, savings banks, and brokerage houses. At presenta customer can borrow up to 50% of the fair market value of thecustomers portfolio held by the mutual fund company or the brokeragehouse to be borrowed and used for other purposes, including reinvestingthe loan proceeds in the account. Because neither the mutual fundcompany nor the brokerage firm is in the business of making margin loanson a wide scale, the loans are relatively expensive, and under currentincome tax laws the interest is not always tax deductible by individualtaxpayers.

While they have the legal authority, commercial and savings banks havenot been in the primary business of making margin loans againstsecurities. And, while most banks or bank holding company's have thelegal authority to offer their customers brokerage services and mutualfunds, they have only been partially successful, since it is not thecentral focus of their business. Cross-selling financial servicesproducts has been largely a failure in almost all instances in which ithas been tried in banks, insurance companies, and brokerage firms. Theproducts are regarded as different and typically require two separatesales forces either by law or practice.

Since the change in the Internal Revenue Code in 1987, a major businessfor banks has been the offering of secured mortgages, known as homeequity lines of credit or home equity loans. Interest on these loans istax deductible against other income for loans totaling up to $100,000per couple on primary and/or secondary homes (up to their fair marketvalue). These loans have proliferated and are offered widely throughtelevision and other advertising. Some of these loans, combined with thefirst mortgage result in for a loan to value ratio of 100% or even 125%of the fair market value of the house that is mortgaged.

The bank to which a customer applies for a home equity loan considers orevaluates the use of the loans proceeds in making its underwritingdecision. For example, home remodeling, which is assumed to increase thevalue of the house as underlying collateral, is favored by bank lenderand their regulators. Similarly, the consolidation of credit card debtto reduce monthly after-tax debt payments is favored. In credit carddebt consolidation, the interest paid on the home equity loan is taxdeductible within the limitations above, whereas interest on credit carddebt is not. This use of loan funds is considered as making the borrowermore creditworthy since a higher proportion of monthly interest paymentsare now tax deductible when the home equity line is used to pay off thecredit card debt and therefore, all other things being equal, theborrower should have more after-tax cash flow remaining for the same orless pretax dollars of interest payments.

Home equity loans are often advertised or marketed to homeowners withhigh credit card debt and the use of the proceeds from the loan isspecified for this purpose. The process of applying for a home equityloan through a bank is complex, time consuming, and must be completedprior to the time the bank can fund the loan. Today home equity loansare offered by banks through their branch offices, by mail, over thetelephone, and some banks solicit and accept applications over theInternet. However, all home equity loan applications eventually entailpaper delays, consumer inconvenience, normal banking intimidation and adetailed inquiry as to the purpose of the loan. In short, today's homeequity loan process is not automated, is not simple, is intimidating andthe applicant receives no value or financial benefit until the entireprocess is completed.

Currently the process of obtaining a home equity loan is standardized,with the borrower having little say over the duration, terms, orinterest payment process. For example, banks cannot permit interest onthe loan to be accrued, and still have the loan classified as aperforming loan on review and examination by the banking regulators.Hence the customer or borrowers choices are circumscribed. Additionally,the process is detailed and sequential with many opportunities forerrors on the part of the customer or the bank, which result in a delayin the customer's loan application processing and the loan underwritingprocess. Should errors occur, manual intervention and investigation isnecessary, further delaying the processing of the loan application.Moreover, the consumer must wait until all of the required steps arecompleted before the loan is funded and disbursed, which is the firsttime there is any tangible benefit to the customer. This lag betweeninitial application and consumer benefit can be several days, but istypically weeks.

Most banks offer relatively standardized home equity loan products withthe customer having limited opportunity to customize the duration,terms, or interest rate components of the loan offered by the bank.Typically, the only three important terms will be whether the rate isfixed or floating, the duration of the home equity loan, and theinterest-only period before principal amortization payments start. Whilethe consumer may request one of these features, the bank ultimatelydetermines the terms and conditions of the home equity loan it isprepared to make, and most consumers have little choice or influenceover the terms or method of payments for their home equity loan.

For most homeowners, their house is their largest single investment.Therefore their home equity is their largest single asset, but is not aliquid asset so long as it remains untapped. While the overall value ofa homeowner's house may appreciate in value 2-6% per year on average forthe country, this is far below the long-term average appreciation in thestock market of 12.5% per year. At a 4% rate of appreciation the initialvalue of a homeowners equity will double in approximately 19 years. At12.5%, the same initial value will double in 5.5 years.

The present commercial banking laws, dating back to the Glass-SteagalAct in 1930's, make it cumbersome, slow, error prone, and time-consumingfor a consumer to utilize the accumulated equity in their house ascollateral to borrow to invest in equity-like funds or financialinstruments that allow the homeowner to conveniently utilize the equityin their house to achieve an equity return in that currently dormantuninvested asset, which is typically the homeowners largest singleasset. There is no easy, automatic, and convenient process in onetransaction to use one financial service product or account that allowsthe customer to conveniently employ their home equity to increase theirinvestments on a tax-favored basis by having the interest on aninvestment account be tax deductible.

At the present time, there is no single integrated financial servicesproduct or account that exists that provides for a home equity loan andan ability to customize the account so that the customer can pre-selector choose both the investment fund's asset mix to be purchased, andcustomize the account, plus having certain performance benchmarks chosenby the customer that when met or exceeded, will trigger an alert, suchas a voice call or electronic message to the account owner.

SUMMARY OF THE INVENTION

Therefore, it is a general objective of the invention to alleviate theproblems and shortcomings identified above.

One of the objectives of one aspect of the invention is a computerimplemented integrated financial management account having an investmentcomponent linked to a loan component so that contemporaneous withsetting up the integrated financial management account the client can becredited with an investment asset in the investment component of theintegrated financial account. Another objective of one aspect of theinvention is to provide the loan component as a mortgage loan includinga second equity mortgage loan.

Another aspect of the invention provides a computer implemented methodof providing a client with an integrated financial management accountthat includes receiving an application for an integrated financialmanagement account from the client, and setting up the integratedfinancial account to have a loan component, an investment component, andan insurance component. Thereafter, the client is qualified for a loanin the loan component of the integrated financial management account,and the proceeds of the loan component are disbursed into the investmentcomponent for the purchase of investment assets.

Another aspect of the invention is to provide the integrated financialmanagement account with triple protection for the loan disbursed intothe loan component of the integrated financial management account. Acollateral asset is pledged to secure the loan, the investment assetsare assigned (or have a lien placed on them) to cover the loan, and afinancial contract (such as a guarantee or insurance coverage) isprovided to further cover either the full loan amount or cover aresidual amount of the loan after the collateral asset and theinvestment assets have been liquidated to pay back the loan.

An objective of another aspect of the invention is to notify a client ofthe integrated financial management account whenever either the loancomponent or the investment component achieves a configurable benchmark.

An objective of another aspect of the invention is to mark to market, inreal time or near real time, the investment component and the loancomponent of the integrated financial management account.

An objective of another aspect of the invention is to receive theapplication for the integrated financial management account through theinternet or other electronic network.

An objective of another aspect of the invention is to provide the clientwith detailed insurance options including calculating and displaying thecosts and benefits of purchasing the insurance options.

An objective of another aspect of invention is provide the client withdifferent retirement planning options and calculating and displaying anactual or projected account value corresponding to the retirementplanning options selected by the client.

An objective of another aspect of the invention is to provide a clientwith a margin loan on an increase in value of the investment asset sothat the proceeds of the margin loan can be invested in the investmentcomponent of the integrated financial management account.

An objective of another aspect of the invention is to periodicallyassess the value of the property pledged for the mortgage loan andcalculate and provide an additional loan as a percentage of any increasein value of the property.

An objective of another aspect of the invention is to provide customizedresponses to a client by providing a service provider on the basis ofcorrelating a client characteristic to a given service provider.

These and other objectives are achieved by providing a computerimplemented method of providing a client with an integrated financialmanagement account including an investment component linked to a loancomponent, the method including the steps of: receiving an applicationfor the integrated financial management account from the client; settingup an integrated financial management account shell with the investmentcomponent and the loan component; contemporaneous with the setting up ofthe integrated financial management account, crediting the client withan investment asset in the investment component of the integratedfinancial management account; qualifying the client for a loan in theloan component of the integrated financial management account; and aftersuccessful loan qualification, disbursing the proceeds of the loancomponent into the investment component, or after unsuccessfulqualification, removing the investment asset in the investmentcomponent.

Also provided is a method in which the client is notified whenevereither the loan component or the investment component achieves a clientconfigurable benchmark.

Also provided is a method in which the values of the investmentcomponent and the loan component are marked to market in real time ornear real time.

Also provided is a method in which the application for the integratedfinancial management account is received over the internet or otherelectronic network.

Also provided is a method in which detailed insurance information andoptions are provided together with a cost benefit analysis for each ofthe insurance options.

Further provided is a method in which retirement planning options areprovided to the client and account values are calculated and displayedcorresponding to the retirement planning options selected by the client.

Also provided is a method in which an increase in value of theinvestment asset is tracked so that an additional margin loan isprovided against an increase in value of the investment asset and theproceeds of the margin loan are invested back through the investmentcomponent of the integrated financial management account.

Also provided is a method in which the value of the property pledged isperiodically assessed, an additional loan is calculated and provided asa percentage of the increase in value of the property, and the proceedsof the additional loan is disbursed into the investment component of theintegrated financial management account.

In a general aspect, the present invention provides an improved systemfor remotely opening a personal financial management investment accountfor homeowners to enable them to seamlessly utilize the equity in theirhouse for a homeowner's loan that funds the purchase of an investmentasset, e.g. a mutual fund in the account and permits the account ownerto select the asset mix from certain choices, chosen from a number ofoptions, such as the terms of the homeowners loan, insurance options,benchmarks, and one or more means notification when a benchmark has beenmet or exceeded. All of the functions and activities currently beingperformed separate loan, investment, insurance, and retirement planningtransactions can be done in this one account. Adding the investment fundto the account credit enhances the home equity loan account to make it aperforming loan for regulatory purposes, which permits the offering offeatures (including customization by the account owner) that are notpresently available on other accounts available on a wide scale tobrokerage, money management, or commercial banking clients today.

In another aspect, the present invention provides the integration of avariety of specific services that may be separately available toselected banking or brokerage customers. Each individual customer willpick from the product component menus to select the investment, homeequity loan, margin loan, insurance, retirement planning and performancebenchmarks and methods of notification to select the mix of servicesthat are individually customized by each customer to reflect theirindividual decisions.

In another aspect, the present invention provides a consistent interfaceat all access points for consistency, quality control, and ease ofdelivery. As customers become familiar with the available interfaces andaccount customization options it will make it easier for Internetcustomers to use the product, and for third-party marketers, e.g. banksto be trained to offer it over their Internet banking network in theirbranches, or by other marketing channels. Consistency of product and thecustomer interface will assist these third-party marketing organizationsto train their employees and sell the product to their existing customerbase.

In another aspect, the present invention provides a computer implementedmethod of providing a client with an integrated financial managementaccount, comprising: receiving application data for an integratedfinancial management account; setting up the integrated financialaccount with a loan component data, an investment component data, and aninsurance component, all associated with an account file; qualifying theclient for a loan in the loan component of the integrated financialmanagement account and associating the qualification information withthe account file; disbursing the proceeds of the loan component into theinvestment component by recording a proceed value in the investmentcomponent data associated with the account file; and purchasinginvestment assets using the proceeds of the loan component andassociating purchased investment assets to the investment component dataassociated with the account file.

In another aspect, the present invention also provides a system foropening the account in a single session that includes the means ofgathering the customer's relevant personal information, house cost andmarket value, current mortgage(s), employment data, and establishing theclasses of investment assets to be purchased, the customized home equityloan, the credit history, the preliminary title situation, the life,accidental death and dismemberment component, the portfolio riskcomponent, and the customers preferences for performance benchmarks fornotification of the customer and the preferred methods of notifying thecustomer. In addition, the customer may choose an option toautomatically increase the loan component (and investment component) asthe house appreciates in value, margin the account when the asset valuesexceed certain benchmarks. Also provided is the option to plan for theautomatic transfer of all or part of the accounts assets to designatedchildren or relatives in stages or over time. Finally, based on the netvalue of the account, the customer is guaranteed a mortgage on asubsequent house that is purchased.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated in and constitute apart of the specification, illustrate a presently preferred embodimentof the invention, and, together with the general description given aboveand the detailed description of the preferred embodiment given below,serve to explain the principles of the invention.

FIG. 1 is a diagram showing the components of a general purpose computerconnected to a network.

FIG. 2 is a block diagram showing the major parts of the IntegratedFinancial Management Account accessing system according to the presentinvention.

FIG. 3 is a flow diagram showing a preferred embodiment of the initialinteraction with the Integrated Financial Management Account accordingto the present invention.

FIGS. 3A-3B are flow diagrams showing the preferred embodiment of theprocesses of the information component of the Integrated FinancialManagement Account according to the present invention.

FIGS. 4A-4E are flow diagrams showing the preferred embodiment of theprocesses of the financial projection component of the IntegratedFinancial Management Account according to the present invention.

FIGS. 5A-5I are flow diagrams illustrating the preferred embodiment ofthe account opening component of the of the Integrated FinancialManagement Account according to the present invention.

FIGS. 6A-6B are flow diagrams illustrating the processing for loanapproval of the loan component of the Integrated Financial ManagementAccount.

FIGS. 7A-7B are flow diagrams illustrating the booking of the loancomponent of the Integrated Financial Management Account.

FIGS. 8 and 9 are flow diagrams illustrating the processing steps for anexisting client's interaction with the Integrated Financial ManagementAccount.

FIGS. 10, 10A, and 11 are flow diagrams illustrating the processingsteps for terminating the Integrated Financial Management Account.

FIG. 12 is a flow diagram illustrating the renewal/termination stepswhen the Integrated Financial Management Account is provided withautomatic insurance coverage for a fixed period.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT(S)

The present invention recognizes that there is a need for a fullyintegrated financial management account that enables homeowners (orowners of other collateral assets that can be pledged) to open a singleaccount with qualified investment assets and a home equity loan in thesame account so that a customer can customize the account's asset andliability characteristics at the time the customer opens the account,and permits the customer to change those characteristics at theirdiscretion 24 hours a day from any location using a personal computer,the Internet, or other suitable telecommunications network for theaccount to change options within the plan sponsor' menu of planmodification choices. In addition, the inventors have recognized a needfor an account that has the option of automatically having a margin loanin the account to purchase additional investment assets for the account.The inventors have also recognized a need to have a financial servicesaccount that permits the borrower to customize the home equity borrowingto permit the borrower to accrue interest or borrow from the account theinterest to be paid on the loan while meeting current bankingsupervision criteria for a performing loan underwritten and held by thelender. The inventors have also recognized a need for this type ofaccount to support a credit or debit card or use a credit or debit cardto pay the current interest on the home equity line in the account or tomake purchases.

In a general aspect, the present invention provides a computerimplemented method of providing a client with a single integratedfinancial management account which has an investment component linked toa loan component. The present invention contemplates that the singleintegrated financial management account is opened based on one set ofaccount opening documentation or information presented by a client.Therefore, a single set of documents presented by a client is sufficientfor opening the integrated financial management account having both aninvestment component and a loan component. Alternatively, the presentinvention contemplates that the account can be opened using informationthat can be presented in one interactive session so that both the loancomponent and the investment component of the integrated financialmanagement account are set up based on a single interaction with theclient.

A further aspect of the invention provides that on receiving anapplication for the integrated financial management account, anintegrated financial account shell is set up. Contemporaneous with theprocess of setting up the integrated financial management account, aninvestment asset is credited to the investment component so that theclient can benefit from any appreciation of the investment asset rightfrom the time of applying for the integrated financial managementaccount.

Thereafter, the client is qualified for a secured loan in the loancomponent of the account and on successful qualification, the proceedsof the loan are disbursed to the investment component so that theinvestment assets are owned by the client. If the loan qualification isunsuccessful, the investment assets are removed from the integratedfinancial management account which may then be closed.

It should also be understood that the processes described herein areprogrammable for use in a general purpose or special purpose computer ora group of such computers on a computer network. Furthermore, thegeneral purpose or special purpose computer or computer network can beconnected to an external electronic network or a public network, such asthe Internet. Programming such computers and connecting to suchelectronic networks is within the abilities of one of ordinary skill inthe art.

FIG. 1 is a block diagram showing the components of a general purposecomputer system 12 connected to an electronic network 10, such as acomputer network. The computer network can also be a public network,such as the Internet. As shown in the FIG. 1, the computer system 12includes a central processing unit (CPU) 14 connected to a system memory18. The system memory 18 typically contains an operating system 16, aBIOS driver 22, and application programs 20. The application programs 20include one or more projection routines for calculating projectionvalues for various parameters to be discussed hereinafter using state ofthe art industry algorithms. In addition, the computer system 12contains input devices 24 such as a mouse and a keyboard 32, and outputdevices such as a printer 30 and a display monitor 28. The computersystem generally includes a communications interface 26, such as anethernet card, to communicate to the electronic network 10. Othercomputer systems 13 and 13A also connect to the electronic network 10which can be implemented as Wide Area Network (WAN) or as aninternetwork such as the Internet. One of skill in the art wouldrecognize that the above system describes the typical components of acomputer system connected to an electronic network. It should beappreciated that many other similar configurations are within theabilities of one skilled in the art and all of these configurationscould be used with the method of the present invention. Furthermore, itshould be recognized that the computer system and network disclosedherein can be programmed and configured, by one skilled in the art, toimplement the method steps discussed further herein.

It should also be noted that for the purposes of this application, theterm “House” includes, but is not limited to the following:free-standing house, attached house, townhouse, condominium house andapartment, cooperative house and apartment, timeshare house andapartment and condominium, farm and any other dwelling a customer mayreside in, as well as any other real property.

To discuss one preferred embodiment of the present invention, FIG. 2provides a high level abstraction of the three parts of the invention.These high level parts are: (i) the client access part 100; (ii) thecommunication interface part 110; and (iii) the different majorcomponents 121-124 of the Integrated Financial Management Account(“IFMA”) of the present invention.

The client access part 100 provides the computer hardware, software, andthe communications capabilities that allow a client to access the IFMAcomponents 120 through the communications interface 110. Using theclient access part 100, a client can access the IFMA components 120using a variety of methods ranging from direct contact over theInternet, normal telephone calls to a call center representative, faxes,e-mails, third-party customer representatives in a bank or otherinstitution. The process of learning information about the IFMA accountand proceeding to open the IFMA account may be instituted using anysuitable communication method to connect with a computer system hostingthe IFMA account.

The communications interface 110 provides a suitable connection to thecomputer system hosting the IFMA accounts. For example, thecommunications interface 110 could include using the Internet to accessthe IFMA account. Therefore, one preferred embodiment of thecommunication interface 110 is a TCP/IP communications controller withappropriate digital switched capability accessible over the Internet toa customer initiating contact directly via the Internet. Anotherembodiment of the invention is for the customer to apply through athird-party representative using the third-party's systems andmiddleware to access the IFMA computer system.

One feature of the present invention provides in a preferred embodiment,that the customers see a similar screen interface irrespective of theclient access configurations. Of course, if a client accesses the IFMAaccount using a third parties interface, the screen could containidentifiers associated with that third party. In the preferredembodiment, the client would apply for the IFMA account via a secure,encrypted firewall to an IFMA computer system. One skilled in the artwould appreciate that the IFMA computer system is not limited physicallyto a single computer system but could also include a distributedcomputer system including several computers connected by a suitableelectronic network (including an internetwork).

The third major part of the present invention includes the accountcomponents 120 of the IFMA account. The account and the accountcomponents 120 comprise data structures with electronic data which maybe implemented by one or a plurality of files and subfiles withappropriate electronic associations. The files or subfiles may belocated in one computer or may be distributed in a plurality of localand/or remote computers across a network. The number of files and themanner of distribution among computers and across a network and themethod of association is a design feature that may be chosen by thesystem designer. As noted, there are several important components of anIFMA account. One important component of the IFMA account is the securedloan component 121 which provides a secured loan to the client, such asa home equity loan or a securities margin loan or a loan based on anycombination of acceptable securities.

Another component of the IFMA account components 120 is the aninvestment component 122 which typically holds the investment assetsselected by the client. These investment assets include mutual funds orstock and/or bond index funds, which are funded for the account with theproceeds of the secured loan for which the client is approved. Theinvestment assets would typically be selected from an approved list ofinvestment assets provided and, in a preferred embodiment, displayed bythe IFMA system. The provider of the IFMA account would have the abilityto change the approved list of investment assets.

Another optional component of the IFMA account components 120 may be aninsurance component 123 that may include one or more of life, accident,disability, insurance components that may be automatically provided tothe client account owner or mortgage underwriter for a period of time.In addition, the client account owner or mortgage underwriter would havethe option of paying to continue the insurance beyond this initialperiod, during the life of the account. Note that the term “mortgageunderwriter” is intended to be construed broadly to cover all levels ofmortgage providers (1^(st), 2^(nd), 3^(rd), etc.) and to cover loanproviders, generally, that are not associated with a mortgage.

In one embodiment, the insurance component 123 may provide that theinsurance for repaying the loan is procured by or on behalf of the IFMAaccount provider without any insurance choice being provided to theclient. In this embodiment, the cost of the insurance may be recoveredby the IFMA provider through higher interest rates charged for the loansor by charging special fees, or by other such means. In some U.S.states, such as New York, regulations such as the New York stateinsurance department article 69, requires financial guarantee insurersto be monoline writers or put up a 50% reserve which may make ituneconomical for multi-line insurers to write such financial guaranteeinsurance. Therefore, the insurance component 123, in one embodiment,contemplates that the IFMA provider arranges (for example, through abank) to purchase any required financial guarantee insurance and recoverthe insurance costs from the clients by charging higher interest ratesor fees, for example. Therefore, in one embodiment of the invention, theprovider of the IFMA account self insures any loan granted in the loancomponent of the IFMA account.

The insurance component 123 could also include portfolio insurance thatthe client account owner or mortgage underwriter can purchase toguarantee the repayment to the IFMA account of the value, in whole or inpart, of the original secured credit in the event that the market valueof the investment assets declines to less than the amount of the loanprincipal outstanding at the time, for example, when the IFMA account isclosed. That is, the insurance component 123 provides, in oneembodiment, a residual value insurance to cover any shortfall in theloan balance outstanding (in the loan component of the IFMA) afterliquidation of the investment assets in the investment component of theIFMA and/or the security or other collateral pledged to secure the loanin the loan component of the IFMA. In the context of the presentinvention, the term “portfolio insurance” is intended to be interpretedbroadly to include insurance to maintain the original value of the assetin the IFMA, and to also include insurance against loss of theappreciation in the assets due to subsequent declines.

It should be understood that the insurance component 123 alsocontemplates other financial contracts or instruments or derivatives(“insurance equivalents”) that guarantee the repayment, in whole or inpart, of the loan provided in the loan component of the IFMA. Therefore,the present invention contemplates the use of other financial contractsthat serve to insure the IFMA account provider of the full or partialrepayment of the outstanding loan balance in the loan component of theIFMA. Some examples of other such financial contracts include, forexample, a financial guarantee or a standby letter of credit. Otherhedging instruments such as a total interest rate swap or options suchas puts and calls may also be used to protect the IFMA account providerfrom any defaults in the repayment of the outstanding balance in theloan component of the IFMA.

Some of the other insurance equivalent products that might be providedinclude, for example, asset fund residual value insurance, mutual fundresidual value insurance, asset fund/mutual fund maintenance valueinsurance, loan principal payoff insurance. Another insurance optionthat might be provided with the IFMA might include a “gains on theportfolio” insurance equal to, for example, a principal value of theloan. Therefore, if any additional loans are granted based on anappreciation of the portfolio or investment assets in the investmentcomponent of IFMA account, then the additional loan amount can also beinsured so that, for example, the originally pledged security, such asthe house, is not exposed to additional risk.

Other account options component 124 generically describes that otheraccount options that could be provided with the IFMA account. Some ofthese additional account options are discussed further herein withrespect to one or more of the account components discussed above. Inaddition, some of these account options could be provided as accountoptions separate from any of the other IFMA account components discussedherein. One such account option could include activating a softwareroutine to automatically track (compare) IFMA account parameters topreset benchmarks. Another exemplary account option could include themethod of notification to the client when one or more of the benchmarksare achieved.

FIGS. 3 to 11 describe, in a preferred embodiment, the operations,functionality, and the interactions of IFMA account according to onepreferred embodiment of the present invention. At the outset, as shownin the flowchart of FIG. 3, a client accesses the IFMA account on anIFMA computer system using the client access routine 100 and thecommunications interface 110 in step 300. The client typically accessesthe IFMA account by means of a screen interface presenting a menu suchas one implemented as a web page (a page on the World Wide Web) on theInternet.

In step 305, if the client has an existing account, the processingproceeds to the steps discussed further herein with reference to FIG. 8.Otherwise, in step 310, general information about IFMA accounts ispresented. For example in step 310, the information provided may includeinformation about the company providing the IFMA account (IFMA accountsponsor or provider), its officers and directors, place of incorporationand where it is licensed to do business, its size, its businessstrategy, how it operates, how it is regulated, and it financialstrength, for example, it's AAA credit rating. The web site couldprovide hot links to other related subjects of interest to a potentialcustomer. The information provided could describe the IFMA accountproduct(s) being offered and explain the steps in opening an IFMAaccount and show an illustration of a hypothetical IFMA account that wasopened 5, 10, 15, and 20 years ago given the asset and liability classesor characteristics selected by the client.

In step 315, if the client does not request further information, theaccess by the client is terminated in step 320. Else, in step 325, ahigh level overview of IFMA accounts is presented to the client in step325 so that the client can select the IFMA modules of interest in step330.

If the client selects the IFMA information module, then step 335 invokesthe information module to proceed to step 340 shown in FIG. 3A. If theclient selects the financial projections module, then step 336 invokesthe steps discussed further herein with respect to FIGS. 4A-4E. If theclient selects the account opening module, step 337 invokes the stepsdiscussed further herein with respect to FIGS. 5A-5I.

With reference to FIG. 3A, the processing proceeds to step 341 in whichthe client chooses the account component of interest so that informationabout the relevant account component can be displayed. If the clientchooses the asset component, information relevant to the asset componentis provided in steps 342-346. More specifically, the steps 342-346provide information on the investment asset component. The client mayreceive information about a limited number, e.g. 6-8, investment fundsoffered in the account. Of course, the present invention alsocontemplates, in alternative embodiments, that other financial assetsmay also be offered for purchase as an investment asset. Each one ofthese individual investment alternatives, Fund 1 to Fund n, can beselected and detailed information about the fund provided, as well asits historical performance over any selected number of years asspecified by the customer.

Examples could calculate and display how fixed investment amounts, suchas, $10,000, $25,000, $50,000 and $100,000, appreciate if historicallevels of the selected fund's past performance are achieved in thefuture. Fund 1 to Fund n could be mutual funds or index funds or a mixof investment funds that provide combinations such as pure equity, mixedequity and debt, and sector funds. For specific calculated projectionsof an amount of investment to be allocated among the available funds,the customer is referred to the Financial Projections Module discussedfurther herein with respect to FIG. 4A. The results of the Fund's pastperformance projected into the future from step 346 can be displayed orprinted out at the customers choice or transferred to the FinancialProjections Module 336 for later use.

In step 346, control may pass back to step 344 to provide historicalprojections of other assets. Otherwise, control passes to step 347 todetermine if the client is interested in another account component. Ifso, control returns to step 341 so that the client can select anotheraccount component. If not, control returns to step 315 (in FIG. 3) sothat the client can request more IFMA account information or close hisaccess session to the IFMA system.

Steps 349-353 display information relevant to the secured loan componentof the IFMA account. Referring more specifically to steps 349-353, theclient receives information relating to the loan component, for example,information about the terms and conditions of each type of the homeequity loans available, their terms, amortization options, conditions,and potential interest rate options. These include, for example, certaininterest accrual options, or other interest payment options that relateto the calculated projected value of the investment funds in theaccount. The information and selections used in the loan module can bedisplayed or printed out at the clients choice. The home equity loanterms selected can also be selected and saved for use in the FinancialProjections Module 336.

Steps 354-358 display information relevant to the insurance component ofthe IFMA account. Referring more specifically to the 354-358, the clientreceives information regarding the different insurance options providedwith an IFMA account. For example, the client may receive theinformation about the terms and conditions of each of the insurancecomponents available in the account. First, the automatic life,accidental, death, and disability insurance component for one year willbe explained and illustrated for the amount of the home equity loan thatthe customer is contemplating. Second, the option to purchase additionallife, accidental death and dismemberment insurance for the amount of theloan in the account will be demonstrated. Third, the option and cost ofpurchasing portfolio insurance to protect against a decline in the valueof the asset component of the IFMA account up to the outstanding balanceof the loan, including interest, will be displayed, explained anddemonstrated for various loan balances.

As discussed earlier herein, the insurance component of the IFMA alsocontemplates the use of other financial contracts and derivatives thatguarantee or reduce the risk of repayment of the loan in the loancomponent of the IFMA. Furthermore, these risk reduction options canrelate to the entire balance outstanding on the loan component or mayrelate to a residual value of the loan component after the investmentassets have been liquidated together with any collateral pledged tosecure the loan. Therefore, in an alternate embodiment of the presentinvention, the various options and projections relating to thesefinancial contracts that reduce the risk of the loan component may alsobe displayed.

Steps 359-363 display information relevant to an account managementcomponent of the IFMA account. Referring more specifically to steps359-361, the client is provided with the options to manage the IFMAaccount. For example, the client may receive the information about theterms, conditions, and opportunities to access the account 24 hours aday 7 days a week to modify it or terminate it. This informationexplains how the client can buy and sell assets among the index funds orother investments offered in the account to reallocate their investmentasset mix, and within prescribed terms modify the terms of the homeequity (or other secured) loan, including, for example, changing theinterest rate, amortization schedule, method of payment and adjustingthe interest rate on the loan to offset other administrative managementfees to increase the proportion of the customers cash payments that aredeductible for individual income tax purposes. These selections can bedisplayed, printed out or carried into the Financial Projections Module336.

In step 362, information will be provided regarding the principaloptions for transferring qualified investment assets between and amongdesignated beneficiaries for retirement planning. A number of possibleoptions may show how each client can design their own program byselecting timing, asset values, number of beneficiaries, or othercustomer specified criteria. The Retirement Planning Module in step 362may also calculate using standard algorithms the before and after taxconsequences of certain retirement planning options. In addition, theModule would calculate and display the possible use of a trust accountand the benefits of utilizing it. This information can be displayed,printed out, or carried over to the Financial Projections Model 336.

Steps 363-367 display information relevant to the automatic margin loancomponent of the IFMA account. Steps 368-370 (shown in FIG. 3B) displayinformation relevant to automatic increase of the home equity line(other loan secured by other qualified assets) and the correspondingincrease in the investment component based on the additional loangranted based on the increase of the home equity value.

Referring more specifically to steps 363-370, the client may receive theinformation about the terms and conditions of the IFMA accounts'automatic home value increase loan or margin loan components. Under thisoption, the client may learn how they can automatically agree toincrease their loan and investment as the house or security increases invalue, and also incur a margin loan for qualified investment fundsecurities in the IFMA account that are above a qualified level inaddition to the increase in home equity loan based on an increase in thevalue of the home. Under this option, the IFMA account may automaticallyincrease the home equity or margin loan amount and purchase additionalinvestment funds specified in the customers current asset allocation mixwith the proceeds of the increased loans. These options may beillustrated with examples of additional home equity loan or margin loandollar amounts invested in investment funds and the excess assetsborrowed on margin, and the combined returns calculated and displayed.This information can be displayed, printed out, or carried over to theFinancial Projections Module 336.

FIGS. 4A-4E show the steps of the preferred embodiment of the financialprojections module 336. As shown in FIG. 4A, step 400 displays a menufor the financial projection module, so that a user can make a selectionfrom the menu in step 401. The exemplary menu options selectable by auser include (i) selecting assets for projections (step 402); (ii)selecting loan terms for projections (step 403); and (iii) inputpersonal assumptions (step 404). The personal assumptions input caninclude providing certain information such as age, tax rates in currentstate, amount of money the customer is considering investing, and thelike, so that the financial projection module can customize itsresponses based on a client's information.

Thereafter, in steps 405 and 406, the financial projections modulecalculates the IFMA account performance with or without the automaticmargin loan feature. In step 407, the financial projections moduledisplays the account performance with or without the automatic marginloan feature. In steps 405 to 407, the account performance is calculatedbased on a projected growth of an investment asset selected by a client.Appropriate federal and state taxes can be factored into calculating theprojected growth of the investment assets. The automatic margin loanfeature provides that an additional loan may be calculated and providedin the loan component of the IFMA corresponding to specified increasesin the projected values of the investment assets. The additional marginloan provided against the increases in the value of the investment assetcan then be reinvested/added the investment component of the IFMA topurchase any allowable combination of permissible investment assets bythe client.

As shown in FIG. 4B, steps 408-413 show financial projections with theautomatic loan expansion feature of the present invention. The automaticexpansion feature calculates and provides an additional loan to the loancomponent of the IFMA corresponding to specified increases in the valueof the collateral pledged to secure the loan component. Therefore, ifthe loan component of the IFMA is secured by a second mortgage on ahome, an additional expansion loan is calculated and provided if thevalue of the home increases by a specified amount or a specifiedpercentage.

As shown in FIG. 4C, steps 414-420 show the financial projectionsperformed based on the different insurance options provided by the IFMAaccount of the present invention. For example, the client would beoffered the option of paying for additional life and Accidental Deathand Dismemberment (AD&D) insurance beyond an automatic coverage period,which the client can accept, decline, or wait until it is priced outwith the cost of the loan, e.g. paid for with a higher interest rate tomaximize the tax deductible nature of the payments, i.e., making thecost of the insurance tax deductible by increasing the interest rate.The current IFMA status would be calculated and displayed after eachchange.

As shown in steps 417-419, the client would be offered the option ofpurchasing portfolio insurance against a decline in the original amountof the investment asset value. The client will be provided with theoption of accepting, declining, or waiting until the insurance is pricedout with the cost of the loan, i.e., making the cost of the portfolioinsurance tax deductible by increasing the interest rate. The IFMAaccount status would be calculated and displayed after each relevantchange.

As discussed earlier herein, at this stage the client could also beshown, in an alternative embodiment, financial projection based onselecting other financial contracts, such as guarantees or hedgingtransactions or derivatives, that might be used to reduce the risk ofrepayment of the balance outstanding on the loan component of the IFMAaccount. Furthermore, such a risk management financial contract mayextend to a residual value of the loan balance rather than the entirebalance of the loan component because the present invention provides atriple security for the loan in loan component of the IFMA. That is, thepresent invention provides that the loan in the loan component issecured by at least the following three means: (i) the collateralpledged to secure the loan (such as a house); (ii) assignment of theinvestments assets in the investment component purchased using, forexample, the proceeds of the loan; and (iii) the financial contract orinsurance that guarantees either a residual value or a whole value ofthe loan balance outstanding. Accordingly, steps 417-419 can also beused to make financial projections using these alternative financialcontracts instead of insurance or could be based on a suitablecombination of the two.

As shown in FIG. 4D, steps 421-424 show that the client is offeredvarious retirement planning options in step 421. In step 422, the IFMAaccount value is calculated with the retirement planning optionsselected by the client. For example, the client would be offered theoption of purchasing a retirement planning option to transferautomatically qualified portions of the investment funds on a regularbasis to designated beneficiaries, e.g. children or universities.Thereafter, the IFMA account status is displayed in accordance with theclient's instructions in steps 423 and 424.

As shown in FIG. 4E, once all the financial planning projection optionshave been presented to the client, the client is offered the option tochange any of the financial projection options in step 425. Thereafter,in step 426 the IFMA account is displayed with the current optionsselected by the client including any options changed in step 425. Insteps 427-429, the client is provided further opportunities to refinethe financial projections by recalculating the IFMA account based onoptions changed by the client.

In step 430, the client has the option of obtaining more information ortransferring to the account opening module 337 in step 431. The clientcan then choose to transfer his chosen selections to the open accountmodule in steps 432 and 433 or close the access session in step 431A.Alternatively, the client can choose to store account selections in step432A.

If the client wants more information in step 430, the client is offereda selection menu to select an account module in step 434. In step 434,the client can choose to enter either the general information module 335(as shown in FIG. 3) or get account information in step 436 that leadsto an option of accessing the account opening module 337 through theoption presented in step 431.

FIGS. 5A to 51 show the steps of a preferred embodiment of the accountopening module 337 and describe and outline the process of opening theIFMA account. As shown in FIG. 5A, in steps 500 to 502, the security,authentication, and privacy features of the IFMA account are presentedto the client so that the client is able to access the IFMA account in asecure mode. The IFMA account is provided in a secure computer systemthat is protected by a firewall and appropriate security features onboth the firewall and on the computer system hosting the IFMA account.These security features include encryption, authentication, filteringand other techniques that are known to one skilled in the art.

Regardless of the interface used, the account opening process may beinitiated de novo by beginning the client access at account openingmodule 337 or by transferring from the general information module 335 orthe financial projection module 336 to account opening module 337. Iftransferred from elsewhere in the system, then the client's personalinformation, already entered by the client, is displayed along with theappropriate customer options selections. If beginning de novo, atemplate to acquire the client's personal information is displayed forcompletion in step 503.

As shown in FIG. 5B, the new IFMA account is opened in step 504. In thefirst preferred embodiment, the IFMA account opened at this stage isreferred to as a “shell” account because the client may not eventuallyqualify for a loan in the loan component of the IFMA account. Onqualification, the proceeds of the loan component are used to fund theinvestment assets in the investment component of the IFMA account. Instep 505, the client is offered asset purchase options for assets to becredited to the client's investment component so that the client canprofit from any appreciation in the asset value right from the date ofopening the IFMA account. The client selects among the asset options 507in step 506 so that the selected assets are purchased in step 508. Itshould be noted that although the client has an interest in theappreciation of the asset from the date of opening of the account, theassets are purchased by the IFMA account sponsor (also referred to as“provider”) and are owned by the IFMA account sponsor until the client'sloan is disbursed in the loan component and the disbursed funds are usedto fund the investment assets selected in the investment component ofthe IFMA account. The account status after the purchase of theinvestment assets are displayed in step 509.

In an alternative embodiment, a second preferred embodiment, theinvestment assets are not purchased until the loan has been granted inthe loan component of the IFMA account. Therefore, the client appliesfor the IFMA account using one set of account opening procedures anddocumentation. Based on this one account opening procedure, the IFMAaccount is set up for the client to have both the loan component and theinvestment component together with an optional insurance component whichserves to reduce the risk of repayment of either a whole or a residualvalue of the loan balance outstanding in the loan component. Asdiscussed earlier herein, the insurance component includes any suitablemechanism that reduces the risk of repayment of the loan balance andincludes suitable financial contracts and guarantees in addition to moreconventional insurance products.

Therefore, in this alternative embodiment, the IFMA account is set usingone account opening procedure that sets up the loan component, theinvestment component and any optional insurance components. In thisalternative embodiment, the investment assets in the investmentcomponent are only purchased using the proceeds of the loan after theloan has been granted in the loan component. This alternative embodimentof the IFMA account is characterized also by the fact that the loanbalance in the loan component is secured by at least three ways: (i) oneor more securities pledged to secure the loan; (ii) assignment of theinvestment assets purchased in the investment component; and (iii) theinsurance or other financial contract provided in the insurancecomponent of the IFMA as discussed below with respect to FIGS. 5C and5D.

In the first preferred embodiment, thereafter, as shown in FIGS. 5C and5D, the client is offered the option of purchasing and adjusting thevarious insurance products offered by the IFMA account in steps 510-525.These insurance options are similar to those discussed earlier withrespect to the insurance options in the financial projection module 336.

In the second preferred embodiment, steps 510-525 are replaced by analternate process that automatically provides insurance coverage whichmay be up to the extent of the loan principal and is arranged orunderwritten by the IFMA account provider. Therefore, in this alternateprocess, the IFMA account provider arranges insurance from an insuranceprovider and then insures each IFMA account with the insurance providerto the extent of the loan amount. Accordingly, the IFMA account provideraggregates all the loans initiated over a period of time, such as a day,and communicates the aggregate amount to the insurance provider on aperiodic basis, such as at the end of each business day. Thiscommunication from the IFMA account provider to the insurance providermay be used to activate or initiate some other function with respect tothe insurance coverage for the loan in the loan component of each of theIFMA accounts that have their loans initiated. The insurance coverage isvalid for a fixed period of time and has an expiry date that is stored,for example, in the insurance component of the IFMA account.

In addition to sending the periodic communication to the insuranceprovider, The IFMA account provider performs calculations to track theutilization of a predetermined insurance limit for the IFMA providerthat has been established with the insurance provider. Therefore, IFMAaccount provider subtracts the aggregate insurance value from thepredetermined insurance limit to create a predetermined insurance limitto be used for a next insurance limit subtraction step for a nextpredetermined time period. Likewise, the predetermined insurance limitmay also be adjusted to account for IFMA accounts that have reached anexpiry date and are, therefore, no longer covered under the insurancearranged through the IFMA account provider. In these instances, thepredetermined insurance limits may be increased to account for theexpired insurance coverages provided they have not been renewed.

Thereafter, in step 526-530, as shown in FIG. 5E, the client isoptionally offered choices for selection of the retirement planningoptions provided by the IFMA account according to the present invention.These retirement planning options are similar to the retirement planningoptions discussed above with respect to the financial projections module336.

In steps 531 and 532, the account opening module 337 optionally offersthe client the opportunity to apply for a credit, debit or a smart cardas an added feature provided by the IFMA account of the presentinvention. These cards can then also be used for payment of interest,fees, or other account dues if agreed to by the client.

In steps 533-537, as shown in FIG. 5F, the client is offered a selectionof benchmarks on the achievement of which the client will be notified bya notification method to be selected by the client. By way of example,benchmarks could be set for the value of a given fund, or for theportfolio as a whole. In step 533, the client is offered a selection ofbenchmarks that are available as provided by the IFMA account of thepresent invention. In step 534, the client selects one or more of thebenchmarks 535 that are provided as options in step 533. Thereafter, theselected benchmarks are displayed in step 536.

In steps 537-540, the client selects the methods for notification if theselected benchmarks are achieved. Therefore, in step 537, the clientselects one or more of the benchmark notification options 538 so thatthe benchmark selections and notifications are set in step 539. Suchoptions may include, by way of example and not by way of limitation,notification by fax, or telephone or e-mail, or mail, or telegram. TheIFMA account status is displayed in step 540 to include the selectedbenchmarks and notification methods.

With reference to FIG. 5G, steps 541-547 show the steps in selecting theloan terms and interest payment options in the loan component of theIFMA account in the first preferred embodiment of the invention. Itshould be noted that in an alternative embodiment, the second preferredembodiment of the invention, the loan terms and interest payment optionsmay be limited or predetermined by the provider of the IFMA account.Therefore, in step 542, the loan term and interest payment options aredisplayed. In steps 543-545, projections are calculated and displayedinteractively to the client for the different loan terms and paymentoptions selected by the client.

Thereafter, in step 547 the different secured credit options aredisplayed to the client. In step 548 (shown in FIG. 5H), the clientselects the secured credit options among the secured credit options 549.In step 550, the selected secured credit options are displayed.

In step 551, the secured credit benchmarks are displayed and describedso that the client can select the secured credit benchmark in step 552from the secured credit benchmark options 553. In step 554, shown inFIG. 51, the selected secured credit benchmarks are displayed.

In step 555, the client selects the notification methods for theselected secured credit benchmarks selected by the client. The clientselects the notification methods from the options 556 and the selectedsecured credit benchmarks and notification methods are set in step 557.The IFMA account status with the selected secured credit benchmarks andnotification methods is displayed in step 558.

In step 559, in the first preferred embodiment, the investment asset tobe purchased is funded by the IFMA sponsor so that the investment assetsselected by the client are purchased and held by the IFMA accountsponsor contemporaneous with the account opening process. It should beunderstood that the term “contemporaneous” in the present inventionapplies to all investment assets purchased that are temporally beforethe approval of the loan in the loan component even if they aretemporally after the account opening process is completed.

On successful approval of the loan in the loan component of the IFMAaccount, the ownership of the investment assets is transferred to theIFMA account's investment component so that ownership (subject to liens)is transferred to the IFMA account holder client at that time. Theclient is also entitled to any appreciation in value of the investmentasset between the date of purchase on the account opening date and thedate of approval of the loan in the loan component of the IFMA account.

As discussed earlier, in the second preferred embodiment, the investmentassets in the investment components are only purchased with the loanproceeds from the loan component after the loan has been approved anddisbursed. Therefore, in the second preferred embodiment, the clientdoes not benefit from any appreciation of the investment assets from theaccount opening date till the date the loan is approved and disbursedsince the investment assets are only purchased using the disbursedproceeds of the loan.

FIGS. 6A-7B show the processing steps performed after a client hasrequested an IFMA account by using the account opening module 337. Instep 600, the process for approval of the loan in the loan component isbegun. The credit history of the client is searched in step 601. In apreferred embodiment this search is performed by connection to an online data base or to a credit bureau service. If the credit is notapproved in step 603, based on the credit history, the loan commitmentis denied in step 604 and the client is notified and the accountterminated in step 605. It is to be understood, that the client is notentitled to any appreciation of the investment asset if the clients loanis declined for any reason whatsoever. Typical processing when theaccount is terminated in step 605 is discussed further herein withrespect to FIG. 11.

If the credit history is satisfactory, the client is notified in step606 and a title search (or other ownership investigation) is conductedfor any collateral provided for the loan in step 607. If the title isnot approved in step 608, the loan commitment is declined, the client isnotified and the account is terminated in steps 604 and 605. In step609, the client is notified that the collateral is being appraised andin step 610 an appraisal of the collateral is obtained and the appraisalvalue date entered in the system. For example, if the collateral is ahouse, an appraisal of the house is obtained. If the appraisal is notapproved, for example, if the appraised value is calculated to be belowa threshold level relative to the requested loan, then the loancommitment is declined, the client is notified and the account isterminated in steps 604 and 605.

If the appraisal is approved in steps 611 and 612 (shown in FIG. 6B) theclient is notified that the appraisal is approved in step 613 and theloan is underwritten in step 614. Thereafter, the client is notified instep 616 and loan disclosure statements are displayed or printed in step616 and presented to the client.

As shown in FIG. 7A, after the client reads the loan disclosures in step700, the client communicates his acceptance of the loan disclosures instep 701. If the client does not accept the loan disclosures, the IFMAaccount is terminated in step 702. The steps followed on termination ofthe account in step 702 are discussed further herein with respect toFIG. 11.

Otherwise, the loan disclosures and the loan documents are printed andmailed or delivered and/or transmitted by electronic means to the clientin steps 703 and 704. If the client does not accept the loan commitmentin step 705, the IFMA account is terminated in step 702. Otherwise, theclient signs and returns the loan documents by either signing a papercopy or affixing an electronic signature using technology that isacceptable to the IFMA account sponsor.

As shown in FIG. 7B, in step 707 the IFMA account sponsor waits for thethree day (or other legally mandated) rescission period to determine ifthe client has accepted the loan in step 708. If the client does notaccept the loan, the IFMA account is closed in step 702, otherwise alien is registered and lien data stored in the system on the collateral,such as a house, in step 709. Thereafter, in step 710, funding issecured for the loan and disbursed/entered to the loan component of theIFMA account. The funds are then transferred to fund the investmentcomponent of the IFMA account so that the investment assets purchasedare funded by the investment component and the investment assets are nowowned in the IFMA account by the client. In addition, as discussedabove, in the first preferred embodiment, the client is entitled to anyincrease in the value of the investment asset in the investmentcomponent since the account opening date.

Thereafter, in step 711, the account status is displayed and if theclient is finished in step 712 the client interaction is terminated instep 713. If not, control is passed to an interface 714 to a modifyaccount module that is discussed in greater detail with reference toFIG. 8.

As shown in FIG. 8, when the client connects to IFMA account computersystem, an account overview menu is presented with options relevant foraccount maintenance and modification. Also, on connecting to the modifyaccount menu, the client is provided with notification of any benchmarksmet or exceeded in steps 801 and 802. If none of the benchmarks havebeen met or exceeded, no notification is provided as shown in step 803,such as, by displaying a screen confirming that none of the displayedbenchmarks have been met or exceeded.

Thereafter, the client accesses the IFMA account in step 900 as shown inFIG. 9. After a current account status is displayed in step 901, theclient is provided with several module selection options. These optionsinclude, for example, a module 903 for selecting additional optionsrelated to insurance (or other similar financial contracts), marginloans, expansion of loan, credit card, or retirement planning. A module904 permits the closing of the client access session. Another module,905 provides the options for modifying the existing IFMA account asdiscussed further herein. Finally, module 906 provides the client withthe option to terminate the IFMA account as discussed further hereinwith reference to FIG. 10.

The modify account module 905 provides the client the option toreallocate existing assets in step 906. The client is also provided theoption of writing a check on available credit in step 907. In step 908,the client is provided the option of selling all or part of the IFMAaccount assets. Therefore, after displaying an account status in step909, the client may use the proceeds of the asset sale to pay down/offthe loan balance in step 910, and/or purchase other investment assets instep 911, and/or make a partial cash withdrawal in step 912.

In step 913, the client has the option of adjusting the loan terms bymodifying interest rate and payment options within specific ranges instep 914, and/or pay down or pay off the loan balance in step 915 ordraw down further on the loan in step 916 within permissible rangesestablished in the account. In step 917, the current account status isdisplayed and in steps 918 and 919 the clients access session is closed.In step 920, the client can select a rollover option as discussedfurther herein.

FIGS. 10-10A show exemplary steps carried out when terminating an IFMAaccount after the IFMA account has been established following approvalof a loan in the loan component. In step 1000, the investment assets inthe investment component of the IFMA account are sold or otherwisedisposed of. In step 1001, the accrued interest and fees due to the IFMAaccount sponsor is deducted from the proceeds of the sale of theinvestment assets. Thereafter, in step 1002, the current balance of thesecured loan is subtracted to determine if the remaining balance in step1003 is positive, that is, money is owed to the client.

If the remaining balance in step 1003 is positive, the lien data in thesystem is deleted for that collateral, such as the house, and a liencancellation notice is transmitted in step 1005. In step 1006, theremaining positive balance is displayed together with the paymentoptions in step 1007. The payment options include electronic transfer ofthe remaining balance in step 1008 or the issue of a certified check instep 1009. In step 1010, the client communicates a selection of thepreferred payment method and the balance is paid out accordingly in step1011.

In this context, it should be noted that the present invention providesfor a triple protection of the loan principal. First, the there is alien on the house or other collateral pledged to secure the loan.Second, there is a lien or assignment of the investment assets in theinvestment component of the IFMA account. Third, there is additionalinsurance or insurance equivalents (as discussed earlier herein) tocover any residual value of the loan balance after the other pledgedassets have been disposed and the proceeds applied to repaying the loan.

FIG. 11 displays the exemplary processing of an IFMA account terminationbefore a loan is approved in the loan component of the IFMA account, butafter an IFMA account shell has been set up and credited with aninvestment asset in the first preferred embodiment of the presentinvention. In step 1101, the investment assets are transferred out ofthe investment component of the IFMA account to the IFMA accountsponsor. In step 1102, any automatically provided insurance iscancelled, and in step 1103, the client is billed for any credit cardsor optional insurance ordered by the client. Thereafter, the IFMAaccount is closed in step 1104, while the client information is retainedin the files (possibly archived) in step 1105.

FIG. 12 discloses the renewal/termination processing steps in onepreferred embodiment when the IFMA account provider arranges automaticinsurance for the loan principal for a fixed period with an expiry date.In step 1201, the expiry date for the insurance coverage is compared tothe current date. If the expiry date has been reached, in step 1202, aprofit/loss calculation is performed for the IFMA account by comparingthe market value of the investment assets in the investment component tothe loan balance in the loan component. If the loan balance is greaterthan the market value of the investment assets, a loss is determined.Otherwise, in step 1202, no loss is determined.

If a loss is determined in step 1202, the investment assets are sold andan insurance claim is generated in step 1203 for the amount of the lossand a claim to cover the loss is generated and communicated to theinsurance provider. Thereafter, in step 1204, the insurance proceeds arereceived from the insurance provider. In step 1205, the loan is paid offwith the proceeds from the sale of the investment assets and thereceived insurance proceeds. In step 1206, it is checked to see if theclient has chosen to renew the IFMA account. If the client has chosennot to renew the IFMA account, the IFMA account is closed in step 1207and procedures are initiated to collect any dues from the client.Likewise, any balance due to the client is paid out to the client. Onceall the dues from the client has been collected, all the mortgages andliens are released. If in step 1206, the client has chosen to renew theaccount, a new IFMA account with a loan component, an investmentcomponent, and an insurance component is set up in step 1208.

If no loss is determined in step 1202, an expiry message is generatedand communicated to the insurance provider in step 1209 so that theinsurance provider can appropriately adjust the predetermined insurancelimit available to the client. Likewise, the IFMA account provideradjusts the predetermined insurance limit available to factor in theexpiry of the coverage period of the IFMA account under discussion.

Thereafter, in step 1210, it is determined if client has indicated ifthe IFMA account is to be renewed. If the account is not to be renewed,the IFMA account is closed in step 1211. Typically, in step 1211, theinvestment assets are liquidated and any balance owed to the client,after the loan and other charges are paid off, are then paid to theclient. Any mortgages or liens are also released.

If the client has chosen to renew the account in step 1211, the clientis presented with several renewal choices in step 1212. One option forthe client is to open a new IFMA account with a loan corresponding tothe full extent of the value of the investment assets. Another optionwould be for the loan to correspond to a part of the value of theinvestment asset with the remaining extra investment assets to bedisposed of separately. That is, in this option only a part of theinvestment assets would have a lien to additionally secure the loan inthe loan component of the new IFMA account. Some of the options offeredto dispose the extra investment assets include (i) liquidate the extrainvestment assets and pay the proceeds to the client; (ii) use theinvestment assets to service the loan; (iii) invest the extra investmentassets in additional qualified investment assets or products; (iv)maintain the extra investment assets in a separate investment assetaccount separate from the IFMA account; or (v) do any combination of (i)to (iv). Thereafter, in step 1213, the IFMA account provider renews theIFMA account, in whole or in part, in accordance with the optionsselected or indicated by the client in step 1212.

In addition to the description of the preferred embodiments describedwith reference to the figures, the IFMA account provides a client withan opportunity to have an additional margin account on the investmentassets in the account, with each account owner offered the opportunityto invest using funds borrowed on margin against other listed securitieseligible for borrowing that (a) the account owner physically possess,(b) are in another brokerage account at a third-party, (c) are mutualfunds or securities at a fund manager or mutual fund or (d) are in a 401(k) or Keogh plan. To open this additional margin account the followingsteps may be completed. The option to open an additional margin accountis displayed and the steps explained. The dollar values, types andassets for the margin account displayed and the client completes thelist of assets, including account numbers, names of brokerage houseswhere the assets are held, and the like.

The IFMA system's program computes the market value of the assetsavailable for the margin loans, displays the amount of the asset fundsavailable for purchase, projects a return based on their historicalreturn to the client, calculates the cost of the interest on the loan,and queries the client whether or not they wish to elect the additionalmargin requirement. If the additional margin account is not chosen, thenthe program displays the current account of the system without theadditional margin account. If the additional margin account is chosen,another linked Margin Account is opened. The conditional assignment ofthe assets to be used for the Margin Account margin loan is displayed.These can be accepted by electronic signature, with printing and writtensignature based on a subsequent mailing or use of a credit card forauthentication of the customer. The automatically calculated amount ofthe margin loan is used to purchase the additional amount of theinvestment assets selected, a listing of which is displayed to theclient.

In addition, the client may be offered the optional life insurance forthe whole account, which may be accepted or declined and the accountrecalculated and displayed with the choice elected. Thereafter, theclient may be offered optional portfolio insurance for the MarginAccount and it will be accepted or declined, and the Margin Accountrecalculated and displayed with the appropriate choices. Likewise, theclient may also be offered the optional retirement planning options,customized performance benchmarks and customized notification methodsfor the Margin Account. See the earlier discussion of these featuresabove for the preferred embodiment for additional details.

It should be noted that present invention provides that each customercould access the account at any time to confirm the current status ofthe account. Account balances, investment asset choices, lines ofcredits, insurance options, and all benchmarks and notification featurescan be displayed and modified. The client can specify whether or whenthey wish written account summaries to be printed and mailed, or whetherperiodic updates should be sent by e-mail, pager, fax, or voice mail.The client can revise these choices at any time and the program andsystem of present invention will display the revised choices and usethem automatically.

It should also be noted that if the client wishes to terminate theaccount at any time, the customer may simply elect to terminate the IFMAaccount. All asset and liability values used for termination are derivedreal time or near real time to the extent possible, i.e., when themarkets are open, and the liquidation of assets will occur during thesession. All fees, expenses, and liabilities are netted in the IFMAaccount and settlement of the clients account is made by providing achoice of an electronic transfer, wire transfer into their account, or acheck sent by a delivery service for next day delivery. In addition,selected accounts may have the privilege of having pre-issued blankchecks and the account owner may then write a check to close the accountor make payment for partial asset sales.

Clients may also make modifications in their account to the asset,liability, insurance, benchmark or notification methods at any time,including partial liquidation's and withdrawals, and includingmodifications in the retirement planning options, automatic marginprovisions, the additional margin account or other aspects of theaccount at any time.

With respect to the retirement planning options, it should be noted thatclients may designate certain allocations of investment assets to betransferred directly or in trust to children, relatives, or otherparties of their choice, e.g., charities. From the current accountstatus display, the retirement planning Module can be accessed. Thisprovides a number of choices to establish separate accounts forchildren, spouses, or designated charities or third parties. Options maybe provided to establish bank trust(s) that can be independentlyadministered by bank trustees, etc. The Retirement Planning Module willguide the client through the choices and, if chosen, may display,transmit, and print the necessary trust and estate forms, includingwills to execute the options elected by the client.

Some of the other features of the present invention are discussed in thefollowing paragraphs.

Internet Broadcasting

The present invention also includes providing a computer implementedmethod for providing financial services over the Internet includingInternet broadcasting or video streaming to deliver information andservices requested by clients.

Internet broadcasting is a generic term that covers both live one-way ortwo-way video and other on demand material, whether video or not, that auser can request. Therefore, the present invention includes usingInternet broadcasting to explain, market, sell, and assist people toobtain financial services products from banks, brokerage firms, mutualfunds, insurance companies, etc. It is used for offering “an integratedfinancial management account” as discussed earlier herein and in theappended claims.

Internet broadcasting or video streaming on demand includes calculationsto match a customer who has supplied demographic data with a customerservice representative or video presenter whose characteristics matchthe client as closely as possible. Thus the client's question orinformation request could be answered by a video of a person or a liveperson chosen to be similar to the customer in some characteristic tothe extent feasible to make the customer more comfortable with thecustomer service representative or presenter in making the financialdecision.

SMIL

“SMIL” is a technology whose abbreviation stands for SynchronizedMultimedia Integrated Language, which is free software that can bedownloaded and allows both Internet broadcasting and data display of aform at the same time on a computer screen. In other words the clientcan see the person who is helping fill out the form at the same time asfilling out the form.

The broadcasting site or Internet server can stream video, still photos,data, charts, and images, and text at the same time for side by sidedisplay. This may be used for financial service products, banks, mutualfunds, stock brokerage firms, etc. It is intended to be used for allintegrated financial management products that have a credit, asset, andinsurance component as discussed earlier herein.

Links

The present invention includes providing clients with financial servicesthrough an internet website including providing hot links whichautomatically take the client to another web page of the provider or ofa third-party for information or calculations requested by a client.

These technologies include media on demand which works by having abutton on the web site, which when clicked, links (or hot links) toanother server, which maintains a mirror of the web site web page, andprovides a stream or broadcast of the requested content. The reason thistechnology is preferable relative to importing just the stream or feedinto the provider's web site is that when changes are made by theprovider of the media on demand, they can be automatically adjusted atthe media on demand web site and there is no need to keep adjusting theproviders web site every time there is a change in the media on demandserver.

Therefore, the present invention includes the use of hot links infinancial service products to explain, assist, sell, market or causeInternet broadcasting to be used to sell a financial services product.Whether the link is to a mirrored site on another server or simplyimports data, pictures or other information from another site, these areall included in the present invention.

Accordingly, the present invention contemplates the use of hot links tocover banks, brokerage firms, mutual funds, insurance companies, theiragents, and certainly anyone who markets an integrated financialmanagement product including an Internet portal (e.g., AOL).

Alternate Application Process

In an alternative application process for the IFMA account, the presentinvention envisages an Internet company and a bank or mortgageunderwriter collaborating to provide the operations and functionality ofthe IFMA account as discussed in the present application. The clientapplies to the Internet company (fulfillment company), the Internetcompany opens an account in the trust department of the bank for thebenefit of the applicant/client. The account, which may be an escrow,custodial, or trust account, is opened in the bank for the beneficialownership of the applicant. However, the bank may not be able topurchase the stock index funds as the investment asset for the IFMAaccount at that time under current banking law. However the Internetcompany can. Hence the stock index fund is purchased using the bankstrust powers but paid for by the Internet company. That is, the Internetcompany owns the index fund, the applicant/client has a beneficialinterest in the account, which entitles them to the appreciation on theaccount from the time they open the account, in the first preferredembodiment, and the asset is purchased (provided their loan applicationis approved). The clients interest becomes absolute when the home equityor other secured loan is completed, documented, the lien registered, andfunded. Then the client has the IFMA account with the investment assetfund and the loan liability.

The Internet company purchases the index fund at the time the account isopened by having a corporate line of credit from the bank to theInternet company. In turn, the Internet company pays the bank to buy theindex fund on behalf of the applicant/client. For example, in the firstpreferred embodiment of the present invention, this may be accomplishedin FIG. 51, wherein the investment assets are purchased in step 560 byplacing an order for an immediate purchase of the selected assets for asub-account in the name of the Internet company. The Internet companyretains an ownership interest in the stock index fund in case the IFMAaccount does not get established, that is, funded by the home equityloan. In the event the IFMA account does not get established, theownership of the stock index fund fully reverts to the Internet company,which sells the stock index fund, pays back the commercial loan from thebank to the fulfillment company, and books a profit or loss on thetransaction. Presumably the bank would not show a gain or a loss, unlessthere was a small transaction processing loss.

The applicant will receive a number of communications (some on line)during the application process and subsequently by a medium of thecustomers choice such as by mail, voice mail, etc. Some of thesecommunications are:

-   -   Notifications sent of the progress in opening the account. For        example, “Your index fund XX has been purchase at XXX worth        XXX”, “Your home appraisal has been completed and is approved”,        etc.    -   The present invention contemplates using e-mail, “push        technology” (like Point Cast) and “media or video on demand”        plus “live video” or video streaming as part of the customer        care process.    -   Push technology will be used to provide information, market        data, and customized web page components to clients so that they        receive the information they have pre-selected. This is a        selection of what they want, a calculation that something they        have requested is available, then a communication to their Web        page of the pre-selected data when it becomes available.    -   Media or video on demand will be used to provide an applicant or        client with a line video or movie feed on their Web site or page        when they request it. These may be MPEG, JPEG or any other        similar technology. The client may have a button on the web page        to click to ask about a relevant topic and in return receives a        video or media explanation of the subject rather than just        providing answers to Frequently Asked Questions (“FAQ”).        Therefore, movies for FAQ and other topics of interest to the        clients may be provided. For example, the question, “How do        Stock Index Funds work?” can be answered with a text answer or a        video explanation of how they work. “Explain how the rollover        feature works?” “How do I know how much house I am [pre]        qualified to purchase based on the status of my Account?” These        questions could be answered by providing a video explanation of        the process followed by a page that can be printed out including        actual calculations as of the date it is requested. This media        on demand content can be stored on the Media on Demand web        site—mirrored to IFMA account sponsors web site and accessed on        demand by individual clients.    -   Live Video responses similar to video on demand may also include        not just FAQ, but also the help desk for computer problems and        the help desk of product explanation problems. At a minimum, the        present invention contemplates these communication technologies        for use in banking, financial services, and integrated financial        service products such as the integrated financial managed        account of the present invention.

First Mortgage “Guarantee” or Rollover

The present invention also contemplates providing a guarantee of afuture or “rollover” first mortgage at the time the initial loan istaken. Therefore, the present invention contemplates a “guaranteed”commitment or a commitment to the person, subject only to limitationsbased on an appraisal of the subsequent house purchased for the rolloverloan.

The present invention also includes at least the following calculationsof the client's guaranteed mortgage. One calculation is at the time whenthe account is opened. Then the second calculation is done on demandwhen a client wants to know what price house on which they can afford tobid in a particular year. In addition, the provider may periodically,for example, annually remind a client of what their house purchasingpower is by running the individual account's balances, projecting theexisting house price (subject to sale) and giving the client a“commitment” that they can get a first mortgage of a certain value forthe purchase of a house as long as the income, house appraisal, creditare still satisfactory.

The essence of the First Mortgage Guarantee or Rollover feature is aunique calculation that can be performed by the client on demand andperiodically by the company to determine the guarantee based on apredetermined formula (for example 75% first mortgage & 25% equity) foroptimum pricing (that is, the lowest available rate) that the client'saccount (including the existing second mortgage that gets rolled over orpaid off depending on the transaction) will support the purchase of ahouse price of a certain price.

This calculation can be performed on demand by the client and can bealso performed periodically by the provider or IFMA account sponsor, forexample, once every six months or once a year, and communicatedelectronically by the provider to the client to be sure that the clientknows the amount provider is committing to write a first mortgage ongiven the current balance in their account.

Therefore, the ability to rollover the IFMA account from one house toanother is one important feature of the present invention.

Another embodiment of the rollover feature is that the IFMA may be usedfor a bridge loan supplied by either the IFMA or provided by anassociated bank or mortgage underwriter so that the account holder maybe able to make an immediate offer on a house that is not contingent onfinancing provided that the IFMA account holder commits to obtain asufficiently large first or second mortgage that would pay off thebridge loan. Of course, the bridge loan plus the first and secondmortgages should not exceed the underwriting standards for the loan tovalue on the second house. Further, the assets in the investmentcomponents also secure the bridge loan.

The present invention also contemplates that the account, unsecured by areal estate loan for a number of days, is portable as is the underlyingmortgage so as be like a lifetime mortgage. Therefore, the portablemortgages can be either a first mortgage or a second mortgage. Anamended loan document (promissory note) and a new lien on eachsubsequent house is needed each time account holder mortgages a newhouse.

Furthermore, the present invention contemplates that the IFMA can beused with reverse mortgages. That is, payments based on a reversemortgage can be used to purchase the assets in the investment componentof the IFMA.

Automatic Home Owners “Account” Increase

The present invention also contemplates using the fact that as the valueof people's houses increase by some percentage in most years, an accountholder can become eligible for a larger loan, with the additionalproceeds invested in the investment component when the loan isincreased. This will have an appeal to many clients, because it willmaximize their investment return. Some original home equity loans willbe taken out as dollar amounts, others as a percentage of the loan tovalue so that the first mortgage and the second mortgage do notpreferably exceed a 100% loan to value. As the value of the houseincreases, a calculation is performed that indicates how much more theclient can borrow and invest.

The calculation can be calculated automatically by the providerperiodically, e.g. once a quarter or once a year. The periodiccalculation can be done because (a) the client has elected to have itdone and the loan and investment increased automatically, or (b) becausethe provider on a periodic basis (once a year or every two years)applies an inflation rate factor to the similar houses in the area,county, or state. Also, as option (c), the provider can input the actualinflation rate from a table of public records and initiate thecalculation, and then electronically notify the client that he iseligible to increase his account loan and investment by a certain value.

The client can elect to institute the automatic account increase at anytime. This is a unique electronic communication from the client to theprovider based on a notification from the provider to the client aboutthe opportunity to increase the amount of the loan based on thecalculation regarding the value of the house or other security pledged.

College Marketing Option and IRC 501(c)(3) Charitable Deductions

Another feature of the IFMA is that it can be marketed through collegedevelopment offices. An alumni could be solicited to take an IFMAaccount and designate the college as the benefactor of the growth of theinvestment asset over time. To facilitate this, using a pull down menuon a website marketing this product, for example, the alumni couldcreate a revocable or irrevocable trust for the benefit of the college.This would permit the alumni to get a charitable tax deduction on allthe interest paid for the loan even where the loan exceeded any limitsfor an interest tax deduction on a home equity loan (currently$100,000). Furthermore, after a period of time, the alumnus could assignan amount of the appreciation to the college and further get a deductionagainst ordinary income in the year(s) of the assignment(s). Inaddition, one option would be a bifurcated option in which the principalof the loan is not part of the trust for the benefit of the college butall of the appreciation in the mutual fund is part of the trust.

Furthermore, the present invention contemplates that such jointmarketing may be done with all elemosynary institutions withuniversities (discussed above) as specific examples. U.S. InsuranceStructure

One feature of the present invention is that the IFMA account providermay structure the insurance so that a national bank, FSB, or othermortgage underwriter may provide the insurance to pay off the loan ifthe liquidation proceeds of the investment assets are less than the loanbalance outstanding in the loan component of the IFMA. The insurancewill be mandatory and in effect the bank or mortgage underwriter willhave arranged the insurance for itself (i.e., it is self insured byeither the bank or the IFMA provider).

The insurance provided according to the present invention can include“asset fund residual value insurance,” “mutual fund residual valueinsurance,” “asset fund/mutual fund maintenance of value insurance,” and“loan principal payoff insurance.”

The present invention also contemplates at least the following specificinsurance coverages. First, the entire principal of the home equity loanis insured so that the borrower cannot loose their house. Second, thegains on the portfolio (the investment assets) may be insured.

By the term “insurance,” the present invention contemplates financialinstruments and other insurance equivalents. These may include financialguarantees, a standby letter of credit, a total interest rate returnswap, puts and calls, or any other type of financial contract thatserves the purpose of asset preservation or protection.

In addition, to the asset preservation insurance, the IFMA accountprovider can easily broker (and eventually underwrite) AD&D and creditlife policies.

Furthermore, the present invention contemplates insurance coverage bothwith or without a specified period of time the product must be held.Furthermore, the concept of maturity of a financial contract can be usedto determine a specified duration for which an insurance coverage may becarried.

Account Opening, Loan Terms and Liens

As discussed earlier, in one preferred embodiment, the present inventioncontemplates the more conventional approach of underwriting the loan,funding it and then purchasing the assets in the investment component ofthe IFMA.

In one preferred embodiment, the present invention contemplates that theclient may move back and forth between a fixed and variable rates aswell as increase the amount of the loan automatically.

Furthermore, the IFMA account provides a triple collateral for the loanin the loan component of the IFMA. There is a lien on the house of theclient. There is a lien or assignment of the investment assets (e.g.mutual fund). There is insurance for any shortfall. Therefore, there isa triple protection of the loan principal (in whole or in part).

It should noted that the claims recite that the data processed accordingto the present invention are stored in one or more files, such as anaccount file that stores the information relating to an integratedfinancial management account according to the present invention. It isto be understood that these “logical” file or files can be physicallyimplemented by one or more physical files or using one or morecommercial database management system files managed by appropriatedatabase management software. Furthermore, as would be recognized bythose skilled in the art, these file(s) could be physically located atone computer system and/or data storage device or could be distributedover many computer systems and/or data storage devices connected by oneor more networks with appropriate database and application softwarecoordinating the reading, writing and updating of the data on thesedistributed or centralized “files.” The term “file” encompasses thelinking or association of local or remote electronic data with a file.The term “associating with” is intended to be interpreted broadly toencompass both data that is stored physically within a file, and alsodata that is disposed at a remote location and is appropriatelyelectronically linked to the file.

Additionally, it should be noted that a variety of communications havebeen described in the present invention, which may be accomplished inany convenient manner, including through the use of wireless technology.

Other embodiments of the invention will be apparent to those skilled inthe art from a consideration of the specification and the practice ofthe invention disclosed herein. It is intended that the specification beconsidered as exemplary only, with the true scope and spirit of theinvention being indicated by the following claims.

1. A computer implemented method of providing customized responses for acustomer care application, including the steps of: receiving a customerservice request data including a customer characteristic data;correlating the customer characteristic data with the a service providercharacteristic data stored in a service provider file to select aservice provider for the received customer service request; and usingthe selected service provider for responding to the customer servicerequest.
 2. The customer implemented method according to claim 1,wherein the customer characteristic data is one of gender, age, race,and accent correlated to a part of country.
 3. The customer implementedmethod according to claim 2, wherein the service provider characteristicis one of gender, age, race, and accent correlated to a part of country.4. The customer implemented method according to claim 3, wherein thestep of correlating the customer characteristic data to the serviceprovider characteristic data includes matching the customercharacteristic data to the service provider characteristic data.
 5. Thecustomer implemented method according to claim 1, wherein said serviceprovider includes one of a person, a video feed, and an audio feed.
 6. Acomputer implemented method of providing financial services over theinternet, comprising the steps of: displaying a financial servicesproduct for auction; receiving and storing bid data for the financialservices product; and calculating a best qualified bid and awarding thefinancial services product to the best qualified bid.
 7. The computerimplemented method according to claim 6, wherein the financial servicesproducts include one of a loan account and an investment account.
 8. Awindow of a graphical user interface, comprising: an integratedfinancial management account window operable to display an entryassociated with at least one of a loan component or an investmentcomponent associated with an integrated financial management account;and the interchange window further operable to display at least onestatus icon related to whether a benchmark for one of the loan componentor the investment component has been reached or passed.
 9. A window of agraphical user interface, comprising: an integrated financial managementaccount window operable to display an entry associated with at least oneof a loan component and an investment component associated with anintegrated financial management account; and the integrated financialmanagement account window operable to display at least one of a loancomponent benchmark and an investment component benchmark, and currentaccount information about the loan component or the investmentcomponent.
 10. The window as defined in claim 8, wherein saidinterchange window is further operable to display change options fordata related to one of said loan component and said investmentcomponent.
 11. The window as defined in claim 10, wherein saidinterchange window is further operable to display projections of theeffect selected change options will have on their respective loancomponent data or investment component data.
 12. A computer data storagemedium having program code recorded thereon for providing a client withan integrated financial management account, the program code comprising:a first program code for receiving application data for the integratedfinancial management account; a second program code for setting up anintegrated financial management account with an investment componentdata and a loan component data stored associated with an account file; athird program code, that contemporaneous with the setting up of theintegrated financial management account, credits the client with aninvestment asset in the investment component of the integrated financialmanagement account by associating the investment asset to the investmentcomponent data associated with the account file; a fourth program codethat qualifies the client for a loan in the loan component of theintegrated financial management account and associates the qualificationwith the account file; and a fifth program code, that after successfulloan qualification, disburses proceeds of the loan into the investmentcomponent by storing the proceeds in the investment component dataassociated with the account file, or after unsuccessful loanqualification removes the association of investment asset to theinvestment component data associated with the account file.
 13. Acomputer implemented method of providing a client with an integratedfinancial management account, comprising: receiving application data foran integrated financial management account; setting up the integratedfinancial account with a loan component data, an investment componentdata, and an insurance component, all associated with an account file;qualifying the client for a loan in the loan component of the integratedfinancial management account and associating the qualificationinformation with the account file; disbursing the proceeds of the loancomponent into the investment component by recording a proceed value inthe investment component data associated with the account file; andpurchasing investment assets using the proceeds of the loan componentand associating purchased investment assets to the investment componentdata associated with the account file.
 14. The computer implementedmethod according to claim 13, further comprising the steps of:associating data relating to a collateral asset, to the loan componentdata, to secure the loan in the loan component; and associating lien orassignment data related to the investment assets, to the loan componentdata, to further secure the loan in the loan component.
 15. The computerimplemented method according to claim 14, wherein the collateral assetis real property.
 16. The computer implemented method according to claim13, wherein the investment assets include one of an equity index fund, abond-index fund, mutual fund, and a combination of an equity index fundand a bond index fund.
 17. The computer implemented method according toclaim 13, further including the step of: notifying the client whenevereither a value in the loan component data or the investment componentdata achieves a client configurable benchmark.
 18. The computerimplemented method according to claim 13, further comprising the stepof: marking to market, in real time or near real time, and updating thevalue of the investment component data and the loan component data andcommunicating the updated values to the client.
 19. The computerimplemented method according to claim 13, wherein the step of receivingthe application data is performed through the internet or otherelectronic network.
 20. The computer implemented method according toclaim 13, further comprising the steps of: determining if the integratedfinancial management account is subject to financial guarantee insurancerestrictions by accessing a file containing state specific financialguarantee insurance restriction data; if determined to be not subject tofinancial guarantee insurance restrictions, displaying detailedinsurance information and options for selection by the client; andcalculating and displaying the costs and benefits of purchasing theinsurance options selected by the client.
 21. The computer implementedmethod according to claim 20, wherein the insurance options includesportfolio insurance on the asset purchased in the IFMA.
 22. The computerimplemented method according to claim 13, further comprising the stepof: associating financial contract information, to secure a part of theloan in the loan component, to the loan component data in the accountfile.
 23. The computer implemented method according to claim 22, whereinthe part of the loan secured is the residual value of the loan afterapplication of a proceeds of selling the investment assets to theliquidate a part of the loan.
 24. The computer implemented methodaccording to claim 13, further comprising the steps of: associating liendata on a collateral asset to the loan component data in order to securethe loan in the loan component; associating assignment or lien data onthe investment asset to the loan component data to further secure theloan in the loan component; and associating insurance data for the loanin the loan component, purchased by a provider of the integratedfinancial management account, to further secure the loan the loancomponent.
 25. The computer implemented method according to claim 13,further comprising the steps of: aggregating a value of the insurancefor each of a plurality of clients set up during a predetermined timeperiod to obtain an aggregated insurance value; and communicating saidaggregated insurance value to an insurance provider.
 26. The computerimplemented method according to claim 25, further comprising the step ofafter each aggregated insurance value for the predetermined time periodis calculated, subtracting that aggregated insurance value from apredetermined insurance limit to thereby create the predeterminedinsurance limit to be used for a next insurance limit subtraction stepfor a next predetermined time period.
 27. The computer implementedmethod according to claim 25, wherein said insurance component dataincludes an expiry date for the insurance; and further comprising thesteps of: comparing the expiry date for each insurance component to acurrent date; and if the current date is equal to or after one of theexpiry dates, then determining if a value of the loan component for thataccount is greater than a value of the investment component; and sendinga first message if the value of the loan component is greater than thevalue of the investment component.
 28. The computer implemented methodaccording to claim 27, wherein said first message is a payout or claimmessage sent to an insurance provider.
 29. The computer implementedmethod according to claim 27, wherein if the value of the loan componentis less than or equal to the value of the investment component,displaying a plurality of options to the client regarding the account.30. The computer implemented method according to claim 29, wherein saidplurality of options include at least two from the group of liquidatethe account, partially liquidate the account, or rollover the accountfor a predetermined time period.
 31. The computer implemented methodaccording to claim 13, further comprising the steps of: aggregating avalue of a first investment in the investment component for each of aplurality of clients set up during a predetermined time period to obtainan aggregated first investment value; and communicating said aggregatedfirst investment value to a broker for said first investment.
 32. Thecomputer implemented method as defined in claim 13, further comprisingthe step of determining a value of the investment component for each ofa plurality of clients on a periodic basis and communicating informationrelating to said determined values to an insurance provider.
 33. Thecomputer implemented method according to claim 13, wherein theinvestment assets associated with the investment component data isselected from a predetermined list of investments.
 34. The computerimplemented method according to claim 13, wherein the step of setting upthe integrated financial management account includes pre-qualifying theclient and, wherein the step of pre-qualifying the client includes thestep of determining a preliminary credit score for the client anddetermining that the preliminary credit score meets a predeterminedthreshold score.
 35. The computer implemented method according to claim13, wherein the title in the investment assets remains with a providerof the integrated financial management account until the step ofdisbursing the proceeds of the loan component is recorded in theinvestment component data in the account file.
 36. The computerimplemented method according to claim 13, wherein the type of the loanin the loan component is stored as loan component data in the accountfile, and wherein the type of the loan includes a mortgage loan.
 37. Thecomputer implemented method according to claim 36, wherein the type ofthe loan in the loan component is one of a first mortgage, second equitymortgage loan, a third equity mortgage loan, other sub-ordinate mortgageloan, and a reverse mortgage.
 38. The computer implemented methodaccording to claim 13, wherein a type of the investment asset is storedin the investment component data in the account file and includes one ofan equity-index fund, a bond-index fund, and a combination of an equityindex fund and a bond index fund and a mutual fund.
 39. The computerimplemented method according to claim 13, wherein the step of receivingapplication data includes calculating and displaying projections for agrowth of investment assets over time.
 40. The computer implementedmethod according to claim 13, wherein the step of qualifying the clientincludes calculation of a credit score for credit approval.
 41. Thecomputer implemented method according to claim 36, further including thestep of customizing the mortgage loan data based on computer generatedprojections of fixed and variable terms, amortization options, anddifferent interest rate and origination fee combinations and displayingthe customized mortgage data.
 42. The computer implemented methodaccording to claim 13, further including the step of: notifying theclient whenever either the loan component or the investment componentachieves a client configurable benchmark value.
 43. The computerimplemented method according to claim 13, further comprising the stepof: marking to market the investment assets and the loan, in real timeor near real time, and updating the investment component data and theloan component data and communicating the updated data to the client.44. The computer implemented method according to claim 13, furtherincluding the steps of: marking to market, in real time or near realtime, and updating the investment component data and the loan componentdata and communicating the updated data to the client; and notifying theclient automatically whenever the value of either the investmentcomponent asset or the loan in the loan component reaches or exceeds aconfigurable benchmark.
 45. The computer implemented method according toclaim 37, further including the steps of: receiving data for a rolloverof the integrated financial management account to a mortgage based on asecond property different from a first property used in the step ofqualifying the client for the original loan in the loan component,wherein said integrated financial management account is associated witha lien file which stores lien data of property associated with theintegrated financial management account; storing the mortgage loan data,secured to the second property, in the loan component data in theaccount file; and subtracting the value of the client's equity in thefirst property and the investment asset in the investment component fromthe balance of the original loan in the loan component and storing therepayment information in the loan component data of the account file.46. The computer implemented method according to claim 45, wherein thestep of receiving data for a rollover includes calculating anddisplaying financial projections based on projection of the increase inhome equity on projected property appreciation and current value ofinvestment assets.
 47. The computer implemented method according toclaim 13, wherein the step of receiving application data is performedthrough the Internet or other electronic network.
 48. The computerimplemented method according to claim 13, wherein the step of receivingapplication data includes the step of an online filling of anapplication form at an online terminal.
 49. The computer implementedmethod according to claim 48, wherein the online terminal includes oneof a laptop computer, a notebook computer, a hand held computer, a pagerand a web-enabled television or telephone.
 50. The computer implementedmethod according to claim 47, wherein the step of receiving applicationdata includes the step of an online filling of an application form byone of the client and a third party at an online terminal.
 51. Thecomputer implemented method according to claim 50, wherein the onlineterminal is located at one of a bank branch, a bank ATM, a bookingoffice, an affinity group office, a telephone call center, a retailstore, a brokerage house, the client's home, and the client's office.52. The computer implemented method according to claim 13, furtherincluding the steps of: displaying detailed insurance information andoptions for selection by a client; and calculating and displaying thecosts and benefit of purchasing the insurance option selected by theclient.
 53. The computer implemented method according to claim 52,wherein the insurance options displayed includes portfolio insurance onthe assets purchased in the IFMA.
 54. The computer implemented methodaccording to claim 52, wherein the insurance option displayed includes alife and disability insurance for a duration between providing theclient with the investment asset and a specific time determined by theclient or a provider of the integrated financial management account. 55.The computer implemented method according to claim 13, further includingthe steps of: storing information regarding pledges of additionalqualified assets in the loan component data associated with the accountfile; calculating and providing an additional loan against the pledgedassets and storing the additional loan information in the loan componentdata associated with the account file; and investing the proceeds of theloan to purchase additional investment assets and storing informationregarding the additional investment assets in the investment componentdata associated with the account file.
 56. The computer implementedmethod according to claim 13, wherein the step of qualifying the clientfor a loan includes the step of retrieving, through an electronicnetwork, both the client's credit history, and title history andappraisal on a property that is associated with the loan component datain the account file.
 57. The computer implemented method according toclaim 13, further comprising displaying account management options for aclient to administer the integrated financial management account onlineon a real or near real time basis seven days a week and twenty fourhours a day.
 58. The computer implemented method according to claim 13,further including displaying account management options for a client toadminister the integrated financial management account online bymodifying stored parameters related to the loan component data and theinvestment component data.
 59. The computer implemented method accordingto claim 13, wherein the step of receiving application data includesreceiving and verifying an electronic signature.
 60. The computerimplemented method according to claim 13, further including the stepsof: displaying a plurality of retirement planning options for selectionby a client; and calculating and displaying an account value in responseto the selected retirement planning option.
 61. The computer implementedmethod according to claim 13, further including the step of providing aninterface for making payments, for purchasing additional investmentassets, to the integrated financial management account using one of acredit card, a debit card, and a smart card.
 62. The computerimplemented method according to claim 61, further including the step ofadding to the investment component data the additional purchasedinvestment asset.
 63. The computer implemented method according to claim61, wherein a credit card, a debit card, a smart card, payrolldeduction, or direct debit from the client's checking account are usedto account fees.
 64. The computer implemented method according to claim13, further comprising the steps of: determining an increase in value ofthe investment asset based on the investment component data associatedwith the account file; calculating an additional margin loan for theincrease in value of the investment asset; and updating the investmentcomponent data with additional investment assets purchased using theadditional margin loan.
 65. The computer implemented method according toclaim 50, wherein the online terminal includes one of a computerterminal and a web enabled television.
 66. The computer implementedmethod according to claim 50, wherein the online terminal includes anInternet enabled device for accessing the Internet.
 67. The computerimplemented method according to claim 13, further comprising the stepof: displaying help and options using multi-media displays to sell,explain or solicit the integrated financial management account.
 68. Thecomputer implemented method according to claim 13, further comprisingthe step of: displaying hot links or metatags to web pages that sell,explain or solicit the integrated financial management account.
 69. Thecomputer implemented method according to claim 67, wherein themulti-media display includes audio and video streams.
 70. The computerimplemented method according to claim 42, further comprising the step ofdisplaying an online interface to interactively configure thebenchmarks.
 71. The computer implemented method according to claim 13,wherein the step of qualifying the client for a loan in the loancomponent further includes calculating a loan commitment for apredetermined sum for a future purchase of a property by the client andstoring the loan commitment data in the loan component data.
 72. Thecomputer implemented method according to claim 36, further comprisingthe steps of: periodically assessing the value of a property pledged forthe mortgage loan; calculating an increase in the value of the property;calculating and providing an additional loan as a percentage of theincrease in the value of the property and storing the additional loan inthe loan component data; and storing additional investment assetinformation in the investment component data on the additionalinvestment assets purchased based on the additional loan.
 73. Thecomputer implemented method according to claim 13, further including thestep of: calculating and storing a reduction in the loan balance in theloan component data based on transferring proceeds of a sale ofinvestment assets whose information is stored in the investmentcomponent data.
 74. The computer implemented method according to claim13, further comprising the steps of: displaying an option forincreasing, by the client, the outstanding balance in the loan componentto generate additional funds; and transferring the additional funds tothe investment component to update the investment component dataassociated with the account file.
 75. The computer implemented methodaccording to claim 13, further including the step of: displaying anoption for paying fees on the investment component of the integratedfinancial management account by allowing a client to increase aninterest rate on the loan in the loan component and storing theincreased interest rate in the loan component data associated with theaccount file.
 76. The computer implemented method of claim 13, furtherincluding the step of: displaying an option for increasing an interestrate on the loan by a client to pay account dues and storing theincreased interest rate in the loan component data associated with theaccount file.
 77. The computer implemented method of claim 76, whereinthe account dues include insurance fees or asset management fees. 78.The computer implemented method according to claim 13, further includingthe step of: storing a provider-assigned percentage of the investmentassets in the investment component data associated with the account filein order to indicate that a percentage of the investment assets in theinvestment component has been assigned to the provider of the integratedfinancial management account to pay fees on the investment component.79. The computer implemented method according to claim 13, furtherincluding the step of: storing a provider-assigned percentage of theinvestment assets in the investment component data associated with theaccount file in order to indicate that a percentage of the investmentassets in the investment component has been assigned to the provider ofthe integrated financial management account to pay any account dues. 80.A computer implemented method according to claim 13, further the step ofdisplaying a charitable-giving option for selection.
 81. A computer datastorage medium having program code recorded thereon for providing aclient with an integrated financial management account, the program codecomprising: a first program code that receives application data for theintegrated financial management account; a second program code that setsup the integrated financial management account having a loan componentdata, an investment component data, and an insurance component, allassociated with an account file; a third program code that qualifies theclient for a loan in the loan component of the integrated financialmanagement account and associating the qualification information in theaccount file; a fourth program code that records a proceed value ofdisbursing the proceeds of the loan component into the investmentcomponent; and a fifth program code that associates purchased investmentassets to the investment component data, the investment assets purchasedusing the proceeds of the loan component.
 82. A system for providing aclient with an integrated financial management account, the systemcomprising: means for receiving application data for the integratedfinancial management account; means for setting up the integratedfinancial management account with investment component data and loancomponent data associated with an account file; means for associating aninvestment asset to the investment component data, contemporaneous withsetting up the integrated financial management account, in order tocredit the client with the investment asset and to record the same inthe investment component data of the integrated financial managementaccount; means for qualifying the client for a loan in loan component ofthe integrated financial management account and recording thequalification in the account file; means for disbursing the proceeds ofthe loan component into the investment component, after successful loanqualification, by storing a value of the proceeds in the investmentcomponent data; and means for removing the association of the investmentasset to the investment component data, after unsuccessful loanqualification.
 83. A system for providing a client an integratedfinancial management account, the system comprising: means for receivingapplication data for the integrated financial management account; meansfor setting up the integrated financial management account with loancomponent data, an investment component data, and an insurancecomponent, all associated with an account file; means for qualifying theclient for a loan in the loan component of the integrated financialmanagement account and associating the qualification information in theaccount file; means for disbursing the proceeds of the loan componentinto the investment component by recording a proceed value in theinvestment component data associated with the account file; and meansfor purchasing investment assets using the proceeds of the loancomponent and associating the purchased investment assets to theinvestment component data associated with the account file.